Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange on 23 August 2017 in New York. Picture: Bryan R. Smith/AFPSource:AFP

THE Australian share market looks set to open firmly higher with investors appearing to relax following the widespread risk aversion prompted by North Korea’s firing of a missile over Japan. At 0700 AEST on Wednesday, the share price futures index was up 29 points, or 0.51 per cent, at 5,661.

Major world markets were rattled after North Korea early on Tuesday fired a ballistic missile over Japan’s northern Hokkaido island into the sea. Asian and European share markets closed markedly lower but on Wall Street’s major stock indices went on to recover from steep early losses triggered by fears that hostilities in the Korean Peninsula could escalate. The Dow Jones Industrial Average closed 0.26 per cent higher, the S&P 500 gained 0.08 per cent and the Nasdaq Composite added 0.3 per cent.

Locally, in economic news on Wednesday, the Australian Bureau of Statistics releases both the June quarter construction work done and the July building approval figures.